Which of the Following Statements Is True About the RBA's

question 2

Multiple Choice

Which of the following statements is true about the RBA's inflation target?

• A) The RBA has a zero inflation target.
• B) The RBA has an explicit target of 2- 3 percent inflation over the course of the business cycle.
• C) The RBA has an explicit upper bound of 3 percent inflation at all times.
• D) The RBA has a crawling inflation target.
• E) The RBA has an implicit target for inflation, that is not revealed to the general public.

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Definitions:

Nationalize

The transfer of private sector assets into public ownership by the government.

Foreign Firms

Companies that are based in one country but conduct business operations in other countries.

Payment

The transfer of money or goods from one party to another as compensation or in exchange for goods or services.

New York Convention

An international treaty designed to facilitate the recognition and enforcement of foreign arbitral awards.